OZschwitz government policy to blame for rising cost of pension, not ageing population

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RR Phantom

Location : Wabbit HoleJob/hobbies : Cayman Islands Actuary

Subject: OZschwitz government policy to blame for rising cost of pension, not ageing population Sun Apr 27, 2014 7:18 pm

The notion that pensioners are about to become a burden on Australian workers is ridiculed in a research paper.

The report, by Monash centre for population and urban research, says that while the cost of the age pension has grown faster than gross domestic product over the past decade, demographic ageing is not the cause.Ian Hammet.

Ian Hammet. Photo: Teagan Glenane

"The rising costs have been due to discretionary policy changes," the report says.

On Sunday, Clive Palmer – whose Palmer United Party will hold the balance of power in the new Senate in July – said his party would not support a rise in the aged pension to 70.

Mr Palmer’s position will cause a headache for the government. Treasurer Joe Hockey has spent the past few weeks explaining why a rise in the age pension is inevitable.

On Monday, Katharine Betts of Swinburne University will publish The ageing of the Australian population: triumph or disaster.

Her report says fears a dwindling proportion of tax-paying workers will be unable to support a growing proportion of age pensioners are "unfounded".